At the close of former President Muhammadu Buhari's administration, on May 3rd, 2023, the Federal Ministry of Communications and Digital Economy announced the approval of a national blockchain policy for Nigeria. This policy document was widely welcomed by blockchain innovators, enthusiasts, and stakeholders as a progressive step for the nation. Its core objective is to "facilitate the development of the Nigerian digital economy and enable citizens to have more confidence in digital platforms." An implementation and steering committee, comprising blockchain experts, professionals, and various bodies, has been established to oversee its execution.

Over the past year, the National Information Technology Development Agency (NITDA) has actively led the implementation efforts of this policy. The genesis of the national blockchain policy, as detailed in its adoption strategy draft, stems from Nigeria's imperative to diversify its economy. The aim is to shift from a heavy reliance on the oil and gas sector towards an economy driven by digital technologies. To this end, the Federal Ministry of Communications and Digital Economy (FMoCDE) was tasked with creating a digital economy policy strategy for Nigeria, which subsequently led to NITDA developing the blockchain adoption strategy.

In essence, the national blockchain policy serves as a regulatory framework designed to guide the widespread adoption of blockchain technology across Nigeria. It effectively lays the groundwork, providing a green light for stakeholders to collaborate and establish a comprehensive legal framework for blockchain utilization in the country. The overarching goal is to cultivate a blockchain-powered economy that facilitates secure transactions, efficient data sharing, and robust value exchange among individuals, businesses, and government entities. Key initiatives outlined in the policy's strategy framework include promoting blockchain business incentives programs and establishing a national blockchain sandbox for proof of concepts and pilot implementations. These government ambitions signal a supportive regulatory environment for blockchain startups.

The policy document enumerates several practical use cases for blockchain technology that can significantly benefit Nigeria. These include enhancing the tracking and tracing of drugs within the pharmaceutical supply chain, verifying university certificates, managing identity data, enabling digital content publication and sales, and facilitating secure peer-to-peer transactions.

The Nigerian blockchain private sector plays a crucial role in the policy's implementation, focusing on three core areas: adoption, capacity development, and innovation. The steering committee, which includes prominent blockchain stakeholders such as Obinna Iwuno, President of Stakeholders in Blockchain Association of Nigeria, and Chimezie Chuta, Founder of Blockchain Nigeria User Group, is actively engaged. Each working group within the committee is developing projects and initiatives tailored to their focus area, aiming for national impact. Recently, members of the steering committee met with the Director-General of NITDA, Dr. Kashifu Inuwa, to present project updates and agree on future directions.

Despite the forward-looking nature of the national blockchain policy document, it conspicuously reveals the Nigerian government's aversion to cryptocurrencies. A specific section states: "Blockchain technology undoubtedly holds great potential for the development of Nigeria’s digital economy. A lot of the focus has been on cryptocurrencies, especially bitcoin. However, there is a lot more that blockchain can do for the economy and this strategy document aims to redirect the focus to other areas." This statement clarifies that the approval of a national blockchain policy does not equate to an acceptance of cryptocurrency, even though data suggests digital currencies remain the most prominent blockchain use case in Nigeria.

Recent actions by Nigerian authorities further underscore this stance. In an effort to combat what it termed 'financial market manipulation and naira sabotage,' the government has been involved in a prolonged legal dispute with Binance, the world's largest crypto exchange. This escalated to the detainment of two of Binance's executives. In February, Nadeem Anjarwalla, a British-Kenyan regional manager for Africa, and Tigran Gambaryan, a United States citizen and Binance’s head of financial crime compliance, were charged by Nigeria’s Federal Inland Revenue Service (FIRS) with tax evasion. Criminal charges were also filed against Gambaryan before a Magistrate Court in Abuja. Weeks later, Nadeem reportedly escaped custody under unusual circumstances, with efforts reportedly underway by Nigerian and Kenyan authorities for his repatriation. While Binance CEO Richard Teng initially claimed cooperation with the Nigerian government, he later alleged that authorities demanded a substantial bribe from the detained executives to drop money laundering charges.

The Blockchain Industry Coordinating Committee of Nigeria (BICCoN), an umbrella body for blockchain organizations, has expressed concern over the protracted legal battle with Binance. The inter-community working group fears that the ongoing impasse could severely damage Nigeria's nascent blockchain industry.